After weeks of rumors that it was in talks to acquire Websense, defense contractor Raytheon officially said on Monday that it has entered into a agreement with Vista Equity Partners to form a new company combining Websense, a Vista portfolio company, with Raytheon Cyber Products.
Under the terms of the deal, Raytheon will contribute $1.9 billion (net of cash acquired) to acquire Websense, of which $600 million will be in the form of an intercompany loan to the yet to be named joint venture.
Raytheon will also contribute the assets of Raytheon Cyber Products and related intellectual property, which is valued at $400 million, the company said.
Formerly a publicly traded company, Websense was taken private in May 2013 by Vista for over $900 million.
According to Raytheon, the new company will leverage Raytheon’s cybersecurity technologies and Websense’s TRITON security platform.
Websense currently has more than 21,000 customers, and over 2,200 channel partners.
“We believe the combination of Raytheon Cyber Products and Websense creates a strong foundation for growth in the cybersecurity market, especially in light of the combined technical, product and multi-channel strengths each brings to the table,” said Brian Sheth, Co-founder and President of Vista Equity Partners. “We are excited to invest in this new venture as we clearly see its ability to accelerate growth and create value for all parties.”
In November 2014, Raytheon acquired Blackbird Technologies, a provider communications and cybersecurity solutions to the Intelligence Community (IC), Special Operations Command (SOCOM) and intelligence organizations supporting the Department of Defense, for roughly $420 million.